Since the pensions crisis, equity release has become an increasingly accepted method of funding retirement, it has been suggested.

Insurance firm Norwich Union has stated that home reversion plans and other methods of equity release were being considered more often by pensioners and those approaching retirement.

It recommended thoroughly discussing financial plans with family members before releasing equity in a property.

Sarah Horner, a spokesperson for the firm, commented: "People are discussing equity release with their families and nine times out of ten their children are saying: 'You've put the money into the house, we want you to enjoy your retirement.' This is an extra way of doing it."

She explained that, depending upon circumstances, either a lifetime mortgage or home reversion plan could be the most suitable method of releasing equity tied up in property.

Research by Norwich Union published last week indicated that three-quarters of mortgage brokers expect to engage in more equity release business in the year ahead.